The BillerudKorsnäs board has approved a SEK 1280 million investment program to strengthen the leading position of the company in kraft papers for packaging applications.
The investment program will result in the Skärblacka production unit in Sweden being developed into a world leading center for machine glazed, MG, kraft paper production. The program includes relocating the BillerudKorsnäs MG paper machine in Tervasaari, Finland, to Skärblacka and investing in surface treatment capacity on the existing paper machine 7 in Skärblacka.
The Tervasaari machine is one of the largest MG paper machines in the world. In Skärblacka it will be fully integrated to pulp production which will give it a highly competitive position in the white MG paper market.
The surface treatment capacity at Skärblacka PM7 will allow further functionality to be added for applications within food packaging, medical packaging and release liners.
The investments will be carried out between 2016 and early 2018 and start-ups of the relocated machine and the rebuilt PM7 are expected during 4Q 2017 to 1Q 2018.
BillerudKorsnäs underlying investment level is approximately SEK 1 300 million per year. The total investment level is expected to increase to approximately SEK 1 420 million in 2016 and approximately SEK 1 900 million in both 2017 and 2018. More than 40 new jobs will be created in Skärblacka as a result of the investments.